Looking for a quick and simple investing strategy that has worked wonders in the past? Check out the “Flying Five Strategy”.

It was first developed in 1991 and is derived from the “Dogs of the Dow” strategy. The “Dogs” strategy involves investing in the ten stocks with the highest dividend yields in the Dow Jones Industrial Average (DJIA).

Once you have found the “Dogs,” finding the “Flying Five” (aka “The Small Dogs of the Dow”) is easy. You simply take the ten “Dogs” and find the five with the lowest share prices.

As soon as you have found the “Flying Five”, you invest equal amounts in each of the stocks, and then hold them for 12 months, after which you reevaluate the DJIA to find the new “Flying Five”.

SmartInvestingStrategies.com best explains the strategy’s underlying logic: “you are investing in large, solid well known companies that are temporarily out of favor and are trading at reduced prices.”

Last year’s “Flying Five” returned an average of 29%. The stocks that comprised the group were Home Depot (HD), Pfizer (PFE), Verizon (VZ), AT&T (T), and Kraft Foods (KFT).

And without further ado, here is this year’s “Flying Five” (assuming you were to start investing today).

Please note that once you make your selection, it will apply to all future visits to NASDAQ.com.
If, at any time, you are interested in reverting to our default settings, please select Default Setting above.

If you have any questions or encounter any issues in changing your default settings, please email isfeedback@nasdaq.com.

Please confirm your selection:

You have selected to change your default setting for the Quote Search. This will now be your default target page;
unless you change your configuration again, or you delete your
cookies. Are you sure you want to change your settings?